Query regarding incorporation!

searcher profile

July 29, 2024

by a searcher from Harvard University - Harvard Business School in New York, NY, USA

Hello!

I had a few questions around Search Fund incorporation:

1. If you're doing traditional search, do you incorporate before securing funding, or only after?
2. What legal structure is most commonly used?
3. Would you advise using a lawyer or is there an online alternative that works just as fine?

Do let me know if you have any advice!

Best,
Rishi

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commentor profile
Reply by a professional
from University of Michigan in Detroit, MI, USA
Hi ^redacted‌, traditional search funds are normally organized as LLCs. If you're looking to raise money from investors, I would do these things first: (1) research market terms, (2) draft an initial marketing deck, and (3) secure soft commitments from investors. AS for organizing organizing an LLC, it's straightforward--you can do it online via the state government's website or via a provider like Legal Zoom. But I would highly recommend working with a lawyer once you've secured soft commitments from your investors. Raising money implicates securities laws. And setting up the fund requires a working knowledge of corporate law. Good luck!
commentor profile
Reply by a searcher
from Harvard University in New York, NY, USA
This was extremely helpful. Thank you, Hallam.
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